Supply Chain News Roundup: Interest Rates Likely to Stay Put

The U.S. Federal Reserve (Fed) is largely expected to hold interest rates steady at the conclusion of its meeting on Wednesday.

There are numerous factors impacting the decision, with price stability a factor. In early July, Fed chair Kevin Warsh, speaking at the European Central Bank’s annual policy forum in Sintra, Portugal, commented, “We’ve seen that prices are too high.”

In a memo to clients and investors, Comerica chief economist Bill Adams reflected on prices, writing, “On the one hand, (there is) good news from relatively tame house prices and rent increases, and from the dissipating impact of 2025’s tariff hikes. On the other, (there is) bad news from rebounding energy prices as disruptions to Mideast and Russian exports resurface; new tariffs; AI-related pressure on electronics prices; and labor supply bottlenecks pushing up prices of services like home health care and nursing care.”

Equilibrium in Warehousing and Industrial Space

The industrial market is gaining equilibrium, with demand surpassing supply. According to a report from Colliers commercial real estate firm, U.S. vacancies stabilized in the second quarter (Q2) after previously rising, and the construction pipeline is expanding.

Takeaways from the Colliers Industrial Q2 2026 — U.S. National report:

• The overall vacancy rate is 7.3 percent, down from 7.4 percent during the first quarter and up from 7.2 percent year over year.
• The net absorption rate (in millions of square feet) is 58.9, an increase from the figure of 50.0 in Q1 and the 27.5 recorded in Q2 2025.
• New supply was down, registering 53.4 million square feet. That’s a big drop from the 74.7 million recorded in Q2 last year. The Q1 2026 figure was 60.7 million.
• However, new construction jumped to 314.3 million square feet, from 290.9 million in Q1 and 283.9 million a year ago.

“Market performance is increasingly diverging, with supply-constrained markets beginning to tighten while coastal and overbuilt markets continue to work through excess availability and rent corrections,” the report states.

The sector overall “entered a healthier phase” during Q2, according to the report, which adds: “These improving fundamentals are laying the groundwork for the next industrial cycle, led by selective development and market-specific growth.”

The Dynamics of New Automotive Trends

In recent years, the automotive and mobility industry has been impacted by tariffs, the coronavirus pandemic and other supply chain disruption. It’s also affected by consumer expectations and paychecks.

New research by McKinsey & Company has found consumers are reshaping the industry through their priorities, preferences and choices, which are influenced by economic pressures.  

More than 20,000 mobility users — in China, the U.S., the United Kingdom, Germany and Japan ­— were surveyed for the McKinsey Mobility Consumer Pulse 2026 Survey, which discovered six automotive/mobility trends:

• Affordability affects demand.
• Interest in electric vehicles is growing.
• The key differentiators impacting choice are advanced driver assistance systems (ADAS) and AI, with traditional factors like brand image and design “taking a back seat,” the report states.
• Car-buying is being done in new ways, requiring manufacturers to consider omnichannel approaches.
• Competitive dynamics are shifting, with new brands offering innovative products.
• In the future, new modes of transportation, like shared autonomous vehicles, will become more prevalent.

“While these trends are progressing at different speeds across markets, they point to a common reality: Consumers are increasingly willing to reconsider what they buy, which brands they trust, how they buy vehicles, and how they travel,” the report states. “Companies that can anticipate and adapt to these changing expectations will be best positioned to compete.”

(Image credit: Getty Images/Douglas Rissing)